Andrew Company purchased 800 ordinary shares of Valley Industries as a trading investment for P148,800. During the year, Valley Industries paid a cash dividend of P32 per share. At year-end, Valley’s shares were selling for P174 per share. In the income statement for the current year-end, what net amount of unrealized gain/loss and dividend revenue should be reported by Andrew Company?

Q: On January 1, year 1, DEF Company purchased 80% of the stock of UVW for P4,000,000 cash. Prior to…

A: GIVEN   On January 1, year 1, DEF Company purchased 80% of the stock of UVW for P4,000,000 cash.…

Q: On June 30, 2021, ABC Company acquired 50,000 representing 25% ownership interest in Arthur…

A: Investment is the asset or security bought to earn returns from the same in future.

Q: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

A: The consolidated income is determined by combining the incomes of both parent and subsidiary’s…

Q: On January 1, year 1, ABC Company purchased 80% of the stock of XYZ for P4,000,000 cash. Prior to…

A: GIVEN   On January 1, year 1, ABC Company purchased 80% of the stock of XYZ for P4,000,000 cash.…

Q: On Jan 1, 20X8, Banawe Company purchased 80% of the outstanding shares of Malate Company at a cost…

A: The consolidated income attributable to the parent entity includes income of the adjusted income of…

Q: On January 1, 2018, ABC Company purchased 40,000 shares of RST at P100 per share. The investment in…

A: Measurements of Investment-: In addition to common deviation, a bond's or bond fund's risk is…

Q: A Corporation purchased a 70% interest in B Company on January 1, 2013 for P140,000, when B’s…

A: B total income = P55000 A’ s share = 70% x P55000 = P38500

Q: During Year 1, its first year of operations, Galileo Company purchased two available-forsale…

A: Available-for-sale securities: These are short-term or long-term investments in debt and equity…

Q: Agustin Company has the following transactions relating to its investments during 2022. January 5 -…

A: Introduction:- The following basic information as follows under:- Shares held-for-trading means…

Q: On July 1, 2022, Denver Company purchased 30,000 shares of Eagle Company's 100,000 outstanding…

A: Lets understand the basics. When one entity purchase more than 20% of the share and less than 50% of…

Q: What should ABC report as investment income?

A: Investments: An investment is considered an asset. It is an amount invested by the investor in PPE…

Q: Chowking Company engaged in the following investment transactions during the current year:…

A: Incomes and expenses related to FVOCI securities do not form part of net income. They are directly…

Q: On October 15, 2020, the Skyline Company received a liquidating dividend of P100,000 from David…

A: Formula: Dividend income = Total liquidating dividend x Ownership Percentage in the company.

Q: MANGO Company acquired 4,000 shares of KIWI Corporation ordinary shares on April 2, 2020 at a cost…

A: The trading investment is recognized at FVTPL and any changes in their fair value are recognized in…

Q: . On January 1, 2020, Santos Ltd. purchased 30% of Yardley Co.'s 50,000 outstanding common shares at…

A: Journal entries are those entries which are recorded in the journal book at the time when-ever a…

Q: [The following information applies to the questions displayed below.] As a long-term investment,…

A: The appropriate journal entries from the purchase through the end of the year ( assuming no…

Q: On May 20, Montero Co. paid $150,000 to acquire 30 shares (4%) of ORD Corp. as a long-term…

A: An acquisition is when a company purchases most of another company's shares.

Q: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

A: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

Q: MD Corp. completed the following transactions relating to investment in AO Company ordinary shares,…

A: Where shares are held as investments for short-term (current assets), the shares are recorded at…

Q: On May 1, 2020, Clarke Inc. acquired 1,250 shares of Mayson Ltd. for $75,000. This investment…

A: Date Particulars Debit Credit 1-May-2020 Financial asset A/c  $75000     To Bank A/c   $75000…

Q: On January 1, 2020, Alice Company purchased 40,000 shares of Jasper at P100 per share. The…

A: Initial measurement of the investment = Purchase cost of Investment + Brokerage fees

Q: On January 1, 2008, Pedestal Company purchased 80% of the outstanding shares of Starlet

A: Working :-                       Net income of Starlet Co for 2008  :  P 100,000…

Q: Milk Tea Company bought 1,000 shares of Macha Corporation as equity investments on January 10, 2022…

A: The company makes several investments to earn more income. When a company purchases the shares of…

Q: On January 1, 2021, Kendall Inc. purchased 25,000 shares of Kylie Company at a cost per share of…

A: If a company purchases more than 20% stocks of the other company and has significant influence over…

Q: On January 1, year 1, ABC Company purchased 80% of the stock of XYZ for P4,000,000 cash. Prior to…

A: GIVEN   On January 1, year 1, ABC Company purchased 80% of the stock of XYZ for P4,000,000 cash.…

Q: Power Corporation purchased a 70% interest in Star Company on January 1, 2013 for P140,000, when…

A: Purchase price of 70% interest in Star Company on January 1, 2013 P1,40,000 Fair value of Company…

Q: Turner Company owns 10% of the outstanding shares of ICA Company. Turner has a choice to measure…

A: There are different valuation methods to measure investments i) Fair Value through Profit/ Loss ii)…

Q: During 2012 Logic Company purchased 4,000 shares of Midi, Inc. for P30 per share. The investment was…

A: In this question, Logic company has purchased 4000 shares at P30/share of Midi Inc during 2012 out…

Q: On January 1, 2008, Lallo Company purchased 15% of Vintar Company’s ordinary shares for P20,000,000.…

A: Given: Lallo Company purchased 15% of Vintar Company’s shares on Jan 1, 2008 Net Income = P6,000,000…

Q: Blanton Corporation purchased 15% of the outstanding shares of common stock of Worton Corporation as…

A: Journal entry: Journal entry is a set of economic events that can be measured in monetary terms.…

Q: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

A: Consolidated financial statement includes the components of financial statements to be prepared for…

Q: On October 15, 2020, the Liza Company received a liquidating dividend of P100,000 from Edward…

A: Equity method of accounting is followed when the holding company has a significant influence in…

Q: Pod Company purchased 25% of the outstanding ordinary shares of Jobs, Inc. and subsequently used the…

A: Under equity method  for the investment, the investor records the investees dividend and net income…

Q: At the beginning of the current year , Flash Company had retained earnings of P4,000,000 . During…

A: Retained earnings are surplus left after paying all operating Expenses, taxes and dividends. It is…

Q: the outstanding shares of JKL Company at a cost of P1,632,000. On that date, JKL had P1,020,000…

A: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

Q: how much should MANGO report as gain or loss on sale of investment?

A: The management sometimes invests in the stock market to acquire other corporations' shares for the…

Q: On June 27, 2021, GHI Co. distributed to its ordinary shareholders 100,000 outstanding ordinary…

A: Following is the answer to the given question

Q: An investor company purchased 60,000 of the 500,000 outstanding shares of the investee company's…

A: Given the following information: An investor company purchased 60,000 of the 500,000 outstanding…

Q: Nakeeta company owned 50,000 ordinary shares which were purchased for P120 per share. During the…

A: Right issue gives right to the existing shareholders for purchase of shares at a discounted price or…

Q: On July 1, 2020 Blush Company purchased 20% of the when the fair value of net assets was…

A: Investment: It is an asset or item which is purchased and held to generate income or for…

Q: At the beginning of the current year, WWW Company purchased 10% of RRR Company's outstanding…

A: When the company purchases the shares of the other company then the amount invested is recorded as…

Q: On January 1, 2020, Santos Ltd. purchased 30% of Yardley Co.’s 50,000 outstanding common shares at a…

A: Purchased 30% 50,000 outstanding common shares of Yardley Co.’s at $20 per share Yardley paid cash…

Q: Nakeeta company owned 50,000 ordinary shares which were purchased for P120 per share. During the…

A:

Q: On March 1, 2022, Dolor Company purchased 5,000 shares of Susan Incorporated paying P12 each share…

A: As per IAS 39, Financial instruments recognition and measurement,  Their is an irrevocable…

Q: On July 1, 2013, Tremen Corporation acquired 40% of the shares of Delany Company. Tremen paid…

A: Carrying amount in the investment account will be calculated by adjusting the opening balances with…

Q: On July 1, 20x6 TRUST Company purchased 80% of the outstanding shares of DUREX Company at a cost of…

A: On 01.07.20x6, TRUST company purchased outstanding shares of DUREX company = 80% Purchase…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.